Creditable Coverage Template Letter For Employers (2018)


Creditable Coverage Template Letter for Employers (2018)
Important Notice from {Employer Group} About
Your Prescription Drug Coverage and Medicare
Please read this notice carefully and keep it where you can find it. This notice has information
about your current prescription drug coverage with {Employer Group} and about your options
under Medicare’s prescription drug coverage. This information can help you decide whether
or not you want to join a Medicare drug plan.
If you are considering joining, you should compare your current coverage, including which
drugs are covered at what cost, with the coverage and costs of the plans offering Medicare
prescription drug coverage in your area. Information about where you can get help to make
decisions about your prescription drug coverage is at the end of this notice.
There are two important things you need to know about your current coverage and Medicare’s
prescription drug coverage:
1. Medicare prescription drug coverage became available in 2006 to everyone with Medicare. You
can get this coverage if you join a Medicare Prescription Drug Plan or join a Medicare Advantage
Plan (like an HMO or PPO) that offers prescription drug coverage. All Medicare drug plans provide
at least a standard level of coverage set by Medicare. Some plans may also offer more coverage
for a higher monthly premium.
2. The prescription drug coverage offered as part of the {Plan Name} from MVP Health Care
is, on
average for all plan participants, expected to pay out as much as standard Medicare prescription
drug coverage pays and is therefore considered Creditable Coverage. Because your existing
coverage is Creditable Coverage, you can keep this coverage and not pay a higher premium (a
penalty) if you later decide to join a Medicare drug plan.
When Can You Join A Medicare Drug Plan?
You can join a Medicare drug plan when you first become eligible for Medicare and each year from
October 15 to December 7.
However, if you lose your current creditable prescription drug coverage, through no fault of your own,
you will also be eligible for a two (2) month Special Enrollment Period (SEP) to join a Medicare drug
What Happens To Your Current Coverage If You Decide to Join A Medicare Drug Plan?
If you decide to join a Medicare drug plan, your current coverage through{Employer Group} may be
affected. You can keep this coverage if you elect Part D and this plan will coordinate with Part D
coverage. If you do decide to join a Medicare drug plan and drop {Employer Group’s} medical plan
with prescription drug coverage, be aware that you and your dependents may not be able to get
this coverage back.
When Will You Pay A Higher Premium (Penalty) To Join A Medicare Drug Plan?
You should also know that if you drop or lose your current coverage with {Employer Group} and
don’t join a Medicare drug plan within 63 continuous days after your current coverage ends, you may
pay a higher premium (a penalty) to join a Medicare drug plan later.


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